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Home My WebLink About2006-08-23 Retirement Board MinutesMINUTES OF THE READING RETIREMENT BOARD MEETING Wednesday, AUGUST 23, 2006 The Reading Retirement Board held a regular session meeting on August 23, 2006, in the The Berger Conference Room, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:00 P.M. by Chairman Joseph Veno in the presence of members Gail LaPointe, Richard Foley, Daniel Seferian, Francis Driscoll, and Board Administrator, Colleen Loughlin. MINUTES • Regular session minutes for the May 24, 2006 meeting were signed by all board members. • FRANCIS DRISCOLL moved to accept the June 21, 2006 and July 26, 2006 regular session minutes as written. SECONDED BY: RICHARD FOLEY VOTED: (3-0-2) ABSTAINED: GAIL LAPOINTE & DANIEL SEFERIAN APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following new members: Theresa Galasso Finance Date of hire - 9/1/04 9%+2% Date of membership - 7/31/06 Robert DeMarco DPW Date of hire & membership - 7/31/06 9%+2% Scott Orsillo DPW Date of hire - 4/24/06 9%+2% Date of membership - 7/31/06 Lisa Finigan SPED Date of hire -11/14/00 9%+2% Date of membership - 7/1/06 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS • According to a PAF, Lisa Finigan was eligible to be in the retirement system as of 7/1/06. She was not entered into the retirement system until August 15, 2006. Although, she was contributing to social security during this time, the board agreed that it was up to Lisa if she would like to buyback the time that she should have been in the retirement system (7/1/06 - 8/14/06). The amount owed would be $128.25. • FRANCIS DRISCOLL moved to approve the following refunds of accumulated deductions: Jeffrey Bowers (DPW) Resigned 8/2/06 Total Deductions & Interest Less 20%o federal income tax Net refund (cash) 20 years, 9 months $60,673.17 $11,532.76 $49,140.41 Carol Strandberg Resigned 7/28/06 1 month (Police - Dispatch) Total Deductions & Interest $418.43 Less 20% federal income tax $ 83.69 Net refund (cash) $334.74 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS • FRANCIS DRISCOLL moved to approve the following Option B refunds: Beneficiary of deceased retiree Janice MacDonald: Owen MacDonald Nathan MacDonald Annuity balance remaining $4,976.91 $4,976.92 Less 20% federal taxes $ 966:99 $ 967.00 Net Option B refund $4,009.92 $4,009.92 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS APPROVAL OF VOUCHERS FRANCIS DRISCOLL moved to approve the following vouchers: 2006 Voucher # 82 Town of Reading Treasurer $ 527,741.20 83 Town of Reading Treasurer $ 3,436.16 84 Town of Reading Treasurer $ 13,550.44 85 Jeffrey Bowers $ 49,140.41 86 Carol Strandberg $ 334.74 87 Owen MacDonald $ 4,009.92 88 Nathan MacDonald $ 4,009.92 89 Town of Reading $ 138.39 90 New England Office Supply $ 46.69 91 USI Insurance Services of MA$ 711.00 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS August retire payroll August Administrator's salary 20% federal taxes (MacDonald Bowers, & Strandberg) Refund to Member Refund to Member Opt B benef of Janice MacDonald Opt B benef of Janice MacDonald Postage due to town Administrative Expense - Supplies Administrative Expense-Bond Renewal INFORMATION/QUESTIONS/OTHER ITEMS • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending July 31, 2006 General Ledger Trial Balance as of July 31, 2006 Bank Reconciliation for the month ending July 31, 2006 Discussed Jane D'Ambrosio's retirement allowance/buyback. Jane retired on 6/23/06 from the School Dept., Special Needs with 16 years and 9 months of service. Just prior to her retirement she made a lump sum payment of $12,096.58 for a buyback of 7 years, 2 months, and 23 days. PERAC has not approved her retirement allowance based on the IRS Code Section 415(c), her lump sum buyback(payment) cannot be greater than her salary earned (the same year that the buyback was done). The board has agreed to continue to pay her the allowance that has been calculated until we receive notification from PERAC. INFORMATION/QUESTIONS/OTHER ITEMS • A COLA reimbursement of $127,679.00 from the State for the period 1/1/06 - 6/30/06 was received on 6/29/06. • Received a transfer request from the State regarding Thomas Murphy. Tom is a police office on leave until September 24, 2006 at the State Police Academy. The Board suggested that the administrator wait until September to respond. No action is needed at this time. • An automatic deposit was made in July 2006 from the Massachusetts Teacher's Retirement System for full payment of its Section 3(8)(c) reimbursement. All Section 3(8)(c) reimbursements have been received.. • In order for the Board to review and consider all relevant facts and circumstances in connection with John O'Keefe, an extension of one ninety (90) days from the date of letter (July 6, 2006) was granted pursuant to the provisions of G.L. c.32, § 6(4) and § 7(6). • The following transfers from Winchester Retirement System were received for: George Zambouras, Town Engineer, dated June 30, 2006 in the amount of $120,540.59. Winchester will accept liability for 22 years, 10 months, and 14 days of creditable service during the periods 6/23/80 - 5/9/03. Paul Damocogno, Firefighter, dated June 30, 2006 in the amount of $19,994.98. Winchester will accept liability for 3 years, 10 months, and 9 days of creditable service during the periods 6/24/02 - 5/3/06. Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending June 30, 2006 General Ledger Trial Balance as of June 30, 2006 Bank Reconciliation for the month ending June 30, 2006 Reading's Profile in the PRIT Fund as of first quarter ending March 31, 2006 • Janice MacDonald, who worked for the Special Needs Department and retired on June 17, 2004, passed away on 6/30/06. She chose Option B at her retirement. The amount of remaining funds in her account is $14,930.75 before taxes. • Received notice from PERAC that at its meeting June 28, 2006, PERAC authorized an Investigatory Hearing pursuant to G.L. c.32, § 23(4) regarding the Middlesex Retirement System and Cambridge Financial Management matter. In accordance with this authorization, an investigative hearing will be scheduled in the near future. • Discussed Jeffrey Bowers' request for refund. Jeff is a mechanic working for DPW. As of August 2, 2006, he is terminating his employment with the Town of Reading Department of Public Works. He has already completed the paperwork for withdrawal of accumulated total deductions. The administrator explained the procedure that we cannot refund his money until he is terminated from Town of Reading, cleared payroll, and approved by the Board. Since he is anxiously waiting for his refund, Jeff has asked that the Board approve his application sooner than end of next month when the Board meetings are usually scheduled. The Board has to follow protocol and wait for the next meeting to be scheduled before a refund is given to Jeff Bowers. Discussed Jane D'Ambrosio's retirement allowance/buyback. The Board has not received PERAC's approval for Jane's superannuation retirement calculation. The board administrator contacted Scott Henderson and he explained that he is working with Barbara Phillips, but at this time she has not been approved (Refer to PERAC Memo #38/2002). Scott explained that a member cannot make a contribution (lump-sum payment) that is greater than their last year's salary. The board administrator then spoke to John Boorack at PERAC because the memo is clearly referring to retirees. He suggested we speak to an outside tax council for advise. 0 The Board Meeting will be held on August 23, 2006 at 6:00 pm. MEMORANDUMS & LETTERS RECEIVED PERAC Menlo #30/2006 - Reinstatement to Service under G.L. c. 32 § 105 PERAC Memo #31/2006 - Actuarial Valuations on the PERAC Website PERAC Memo #32/2006 - Investment Manager List PERAC Memo #33/2006 - Tobacco Company List PERAC Memo #34/2006 - Implementation of Local Option Accidental Death Benefit Increase Chapter 55 and Section 3 of Chapter 64 of the Acts of 2006 PERAC Memo #35/2006 - Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees PERAC - The PERAC Financial Bulletin, Second Quarter MACRS - Report of Blue Ribbon Panel OLD & NEW BUSINESS ADJOURNMENT FRANCIS DRISCOLL moved to adjourn this open session at 6:45 P.M. SECONDED BY: RICHARD FOLEY VOTED: (3-0-0) UNANIMOUS hR. Veno, 2nd elected Gail LaPointe, Ex Officio )7 'CIL u Richard P. Foley, 1" appointed Francis P. Driscoll, Pelecte~d Vice Chairman, Daniel B. Seferian, 2n6 appointed